Buy American Amendments of 1987

Buy American Amendments of 1987 - Amends the Buy American Act to define the term "manufactured in the United States" to exclude any article, material, or supply assembled outside the United States. Provides that an article shall not be considered "substantially all" from articles, materials, or supplies made in the United States unless at least 50 percent of the constituent elements were made in the United States.

Makes the cost of a domestically produced article, material, or supply "unreasonable" if it exceeds the cost of a competing article, material, or supply not made in the United States by ten percent or more. Increases the differential to 15 percent for articles made in a labor surplus area.

Repeals the provision exempting articles purchased for use outside the United States from Buy American Act requirements.

Subjects State and local governments to Buy American Act requirements when spending funds from a Federal block grant program.

Applies the Buy American Act requirements to procurement by the Department of Defense.

Exempts acquisitions pursuant to current memorandums of understanding with member countries of the North Atlantic Treaty Organization, until such memorandums expire or are amended or renewed.